It is well known that house prices have increased dramatically over the past decade. The younger generation who aspire to purchase their own property are struggling to meet the financial demand needed to obtain a mortgage.
The Help to Buy mortgage guarantee assists with purchasing a home by providing 5% of the purchase price. The guarantee is given to the mortgage lender rather than the individuals.
In order to receive a Help to Buy guarantee, there are some eligibility criteria, including:
- The property is sold for less than £600,000
- The property is not a shared ownership or shared equity purchase
- The property is not a second home
- The property is not to be rented out after purchase.
The Help to Buy guarantee has developed as previously it was only available for properties of a certain age. However, now the property can be newly built or already existing. The owners do not have to be first-time buyers and there is no limit on the individuals level of income.
To apply for Help to Buy, you can apply directly to certain banks who will ensure you are able to make the repayments before offering a mortgage. We can also complete the process on your behalf during the conveyancing process.
If you have any legal queries relating to the new Help to Buy guarantee scheme, then please do not hesitate to contact either of our offices or use our online enquiry form.